Section 3

The area referred to in section 2 shall cease to form part of the State of Sabah and the State of Sabah shall relinquish and cease to exercise any sovereignty over the said area and all power and jurisdiction of the Yang di-Pertua Negeri and the Legislative

Assembly of the State of Sabah in or in respect of the said area shall come to an end.

Succession to rights, liabilities and obligations.